Front line engagement & peer-to-peer management systems

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Peer-to-peer Management Systems

This new management system creates a paradigm that reframes leadership to engage and catalyze participative communities both inside and outside a single organization.

Source: THE OPEN ORGANIZATION by Jim Whitehurst published by HBR Press, 2015

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ENGAGEMENT: What is on the employee’s

mind? Can I get them engaged in company

projects?

Traditional Top-Down Decision-Making

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With top-down decision-making, walls tend to be built between departments.

They need not collaborate, as decisions have already been made.

Also, with top-down decision-making,

walls tend to be built between a

company’s suppliers, customers, partners

and the general public. They too are not

involved in the decision-making process.

Outside suppliers, customersEmployee

Barriers to communication and collaboration

President

Vice President Finance

Controller

Vice President R&D

Product Researcher

Vice President Production

Management

Production Planning

Vice President Sales

Salesman

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Peer-to-peer Management Systems engages staff

In a peer-to-peer management system, formal managers can only try to create the right environment for the group. The front-line group selects its own projects and project leaders.

Questions?

Concerns!

This new type of management system is being successfully adopted. It is a self-managed front-line peer-to-peer community that is an all-inclusive, leadership-driven, employee-owned culture. It sounds like an ESOP but with a strong management system included.

Questions?

Concerns!

Questions?

Concerns!


Front-line

Observation

Orient to the issue

of concern

Decide on action

plan

Implement

of Action plan

Speed of response and

resolution

Front-line Quick Action

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Management directives can reduce people’s desire to engage in the problems and goals

of the company. This will slow execution down and reduce the chance of success.

As much as possible with the knowledge and skills they have, front-

line people can manage themselves, get things done faster and better.

The faster a company acts to market changes, customer desires/complaints and competitor activities, the more competitive they will be. Front-line staff participation is the secret.


Peer-to-Peer Managed OrganizationsCommunities that spontaneously self-organize around a problem or activity

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President

Vice President Finance

Controller

Vice President R&D

Product Researcher

Vice President Production

Management

Production Planning

Vice President Sales

Salesman

Peer-to-Peer Managed Organizations: Have agility, innovation and empowerment.

Bottom-up Environment: Are more passionate, have more initiative, are self-managing, are more creative, are

more transparent, are more cooperative, value meritocracy and maintain personal accountability.

Conditions of a “Front-line Peer-to-Peer” Community (management team)

1. Purpose: Belief in the single purpose of the team with passion

2. Value: Belief the value the purpose will serve all stakeholders, including themselves.

3. Skills: Possess required skills and knowledge that will contribute to achieving the goals.

4. Communication: Good ability and desire to communicate with other members of the team.

5. Trust: Have members on the team that are highly trustworthy.

6. Caring: They personally care about what is being achieved.

7. Curiosity: They have curiosity as to what can be achieve and envisions positive rewards.

8. Leadership: A group member is decided by the group to speaks for the group and insure open discussions.

They build on connections, trust,

transparency, collaboration

and meritocracy.

Accountability

Superiors

Peers

Staff

Peers

Front-line 360°Accountability

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Managers are rewarded

by there peers and

subordinates as well.

Rewards are not from

superiors only.

Accountability

Superiors

In the conventional organization, accountability is only one-way, from

staff to superior. In peer-to-peer managed organizations, employees

are accountable to everyone affected by the activity.

Front-line peer-to-peer managed organizationconventional organization


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Why (Motivating &

inspiring)

How (Getting things done)

What (Setting Direction)

Command, control, central

planning

Title & Rank Hierarchy

Promotion Pay

Conventional Organization:

Cascading down from “What” to “How” to “Why”


Conventional Organization vs. Peer-to-Peer Managed Organization

Conventional Organization vs. Peer-to-Peer Managed Organization

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Why (Motivating & inspiring)

How (Getting things done)

What (Setting Direction)

Catalyzing, inclusive

decision-making

MeritocracyOpen discussion

& problem solving

Build engagement

Show personal value

Show contribution

Peer-to-Peer Managed :

Bubbling up from “Why” to “How” to “What”


Front-line Accountability & Action

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TOP-DOWN: Managers make decisions and

give direction. All other people just follow

assignments without input or thinking.

Top-down Environment

•Employees financially dependent, obedient, diligent, capable, competitive for position/title, secretive, asset controlling

Bottom-up Environment

•Passionate, Initiative, Self-managing, collaboration/sharing, creative, transparent, cooperative, meritocracy

BOTTOM-UP: As much as

possible with the knowledge

and skills they have, let front-

line people manage themselves.

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Front-line Decision-making and management

Traditional Hierarchical

Organization:

•Large Scale coordination,

Efficient, Disciplined

Peer-to-Peer Managed

Organization:

•Agility, Innovation, Empowerment.

Giving DirectionShare in decision-making

Demand voice in decisions

Manager tells people what to do.

The manager convinces people that they are valuable and informs them where they fit in. He asks for suggestions on what to do and how to be accountable for it.

It is difficult to be excited and passionate about something you are told to do without an explanation or your opinions heard.

Peers as participants: They want to play a in role projects being considered. They do not want to just leave it up to others to decide. They wanted to help decide exactly what the project will achieve.

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Front-line meetings that stimulate all member in the discussions

Too toxicEmotion based

criticism

Too niceWithholding beliefs for group harmony

Response to Suggestions

(Communication Breakdown)

“Creative abrasion”: There may be disagreements, but they are always in

the context of a shared purpose, shared values, and rules of engagement.*

* Source: COLLECTIVE GENIUS, by Linda Hill, Greg Brandeau, Emily Truelove, and Kent Lineback, HBR Press, 2014

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Front-line discussions must be balanced.

1-Freedom to speak

2-Courage to offer

something different

3-Commitment to goal and

progress

4-Accountable

for results

Four things must be balanced in peer-to-peer

managed discussion meetings:

1. All members in a meeting must be

encouraged to speak freely and honestly.

2. All members must be courageous enough to

be different.

3. All members must be committed to progress

and achievement.

4. All members must be accountable for results

and back up their positions with facts.

- Commitment- Accountability

- Freedom- Courage


This is where we rely heavily on 360 degree

accountability and peer-to-peer management.

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Opinions and open discussion with clear goal in mind

Shut down debate

• Attacks too caustic

• Off goals & objectives

• Unsupported opinions

Push for frank feedback

• Encourage speaking time

• All feedback is a volunteered gift.

CONCERN: Chaos, off objectiveGOAL: Open discussion

CONCERN: Closed, non-participative environment

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Us/Them Management vs. We Management Problem

Us: With status and titles, in suits, with nice cars, parking spaces, big offices.

Them: In work clothes, with old cars, foot lockers and no office.

We:No single member sticks out. We discuss what needs to be done together, decide our own leader, identify challenges and put in action plans together. Have no titles, are all the same and respect each other’s concerns.


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What if there were a way to treat those outside your company in a way that

truly inspires, motivates and rewards top performance and contribution?

Building front-line communities outside the organizationamong partners, vendors, customer and general contributors

Could the conditions of a “Front-line Peer-to-Peer” Community

be applied (slide: 6)? It may well be that we will be hearing

examples and cases of this in the months and years ahead.

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Top-down management has been successful, but peer-to-peer front-line management is gaining popularity and success. With today’s communication technology, possibly there could be a blend of both approaches in any situation to achieve the best outcome.

Top-down vs. Peer-to-peer Management

Top-down direction giving hierarchy

Blend of approaches by situation, problem

and assignment

Full peer-to-peer community decision

management

To gain the efficiency and coordination of a top-down system on the one hand and the speed and agility of a peer-to-peer system on the other, a detailed make-up of this blend is what we have to explore. Possibly that exploration should be on a project, threat or opportunity basis.

Whatever the configuration, people must agree with it. Possibly a "Count Me In" written agreement is need, which establishes the behaviors expected and what procedures to be followed.

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If the environment is right and the members are willing to participate in this self-managing system, a great deal can be achieved.


Front line engagement & peer-to-peer management systems

Business

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